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However, several other platforms have similarly sought to evolve into social commerce before pulling back due to a lack of interest. For example, Meta last year pulled back on several social commerce features, including Instagram鈥檚 Shop tab, as it sharpened its focus on driving advertising revenues. The big takeaway: TikTok faces an uphill climb to attract more sellers.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss whether TikTok Shop will face the same challenges as Instagram's social commerce efforts, how much Amazon's partnership with Meta's social media platforms will affect TikTok, and if TikTok Shop is ruining TikTok. Then in a newish segment, "Loyalty Point, Counter Point," we discuss whether Instagram or TikTok has a better overall ecommerce experience. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Blake Droesch.

Go further: Read our Social Commerce Forecast 2023 report for an in-depth analysis of the key trends shaping social commerce.

Social commerce. High-quality content is central to any social commerce strategy, but many retailers and brands lack the in-house expertise to produce such content. Generative AI could reduce that friction because it offers a cost-effective way to create blogs, captions, images, and videos to help convert social shoppers.

Despite 79% of consumers reporting that rising inflation impacted their spending in Q1, Amazon increased sales across 14 of 24 product categories, per Jungle Scout. Quality also matters to Amazon shoppers, with 64% saying they鈥檙e influenced by products with the best ratings/reviews and 60% saying they鈥檙e influenced by product ratings/reviews with photos or videos. 2.

The trend: While live shopping is yet to fully take off in the US, some companies are trying to find the right formula to unlock sales. Best Buy announced a series of live shopping events in partnership with Talk Shop Live to be held throughout November in the lead up to the Cyber Five.

While social commerce is on the rise in the US, livestream commerce has yet to take off. In addition, advances in technology (like ChatGPT) may help jumpstart voice commerce adoption. Here鈥檚 what marketers need to know to take advantage of the increase in physical and digital shopping channels.

What trends will we be talking about this year? Consumer behaviors will be shaped by continued uncertainty and cultural trends spilling over into commerce.

Walmart is launching its first shoppable video series: The first episodes of the holiday-themed 鈥淎dd to Heart鈥� will be available on Roku, TikTok, and YouTube beginning on Dec. 2.

Social commerce success hinges on the platform. Brands that want to experiment with social commerce this holiday season need to make sure they鈥檙e targeting the right audience on the right platform. For example, Gen Z prefers to make purchases on Instagram, YouTube, and TikTok, according to Jungle Scout. But Facebook is the platform of choice for the general US population.

Time spent on media and consumer spending are plateauing, making one company's gain another's loss. Diving into these market dynamics, we explore innovative strategies for advertisers and retailers to win consumers in the new digital era.

Amazon is the largest retail marketplace in the US, bringing in $328.30 billion in sales, per our forecast. eBay comes in second ($35.02 billion), followed by Walmart ($10.64 billion). Other marketplaces, like Shein and Temu, are also fighting for their share of consumer dollars by offering lower prices than competitors.

TikTok sister app Douyin is a livestream behemoth in China, where nearly 40% of internet users also engage in livestream shopping, according to our forecast. But in the US, the format hasn鈥檛 caught on in the same way.

For that reason, retailers should continue to experiment with live shopping as a brand-building opportunity and as part of an omnichannel approach, rather than primarily as a sales driver.

The full US rollout of TikTok Shop in September has made impulse social commerce purchases even easier, as it鈥檚 allowed marketers to convert shoppers through video content or livestreams. Obstacle: Is seamless online checkout too seamless? The quick, efficient nature of online shopping can leave little room for consumers to consider adding items.

Gen Z-oriented fashion brand Cider sold over 100,000 items on the platform, with a two-piece knit dress accounting for roughly a third (over 34,000 units) of those sales due to a handful of viral videos featuring the product that have been viewed over 80 million times.

Merchants will be able to access order and customer information from TikTok sales via their Shopify dashboards. But beginning on Sept. 12, Shopify sellers will no longer be able to sync their product catalogs to TikTok and feature items in a dedicated tab, and instead will have to switch over to TikTok Shop.

ByteDance is dead set on building up TikTok Shop in the US: Its aggressive moves to build a robust shopping service could lead to a $500 million loss this year.

According to our September US Social Commerce and Digital Trust Survey, 45% of Gen Z users who made a purchase through social media said that 鈥渇inding a product [they] like鈥� was the top factor driving them to make a purchase. Respondents ranked recommendations from influencers far lower, at 22%, suggesting that users are going beyond 鈥淔or You鈥� feeds and also consuming content surfaced in searches.

Meta and Amazon are testing Amazon product sales inside Instagram and Facebook. The partnership between X (formerly known as Twitter) and Google demonstrates what happens to platforms struggling to attract sufficient advertisers. Some of these companies appear dominant in their respective markets.

While Amazon, Walmart, Apple, and eBay will remain the top three US retail ecommerce companies by sales this year, more category-driven etailers like Carvana and Chewy are moving up the ranks. Carvana has been up and down in recent years, according to our 鈥淭op 15 US Ecommerce Companies Forecast鈥� report. In the years prior to the pandemic, Carvana鈥檚 sales grew by triple digits.

We all know that 2023 will be the year of retail media, social commerce, and lingering economic uncertainty. But here are some more targeted possibilities for the year ahead.

Amazon turns to Meta, Snap partnerships to keep TikTok at bay: As the retailer moves in on social commerce, TikTok is beefing up its supply chain.

Internationally, sales grew 63% to $39 billion, roughly contributing a quarter of its topline. Despite this, overall growth is still much slower than 2023. Net profit grew to around $33 billion, per anonymous individuals briefed on the matter and cited by The Information.

Creator content is crucial to social commerce strategies. Regardless of whether social shoppers are buying because creator content is most effective or because it鈥檚 being served to them more frequently, brands that want to drive sales from social media must work with creators. But brands should take a holistic approach to social commerce.